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Sustainability Report 2012 Sustainability Report NIPPON PAPER GROUP Sustainability Report 2012 Detailed Edition NIPPON PAPER GROUP, INC. Editorial Policy The Nippon Paper Group has this year published an English-language detailed edition sustainability report to provide both in-house and external stakeholders an in-depth account of the Group’s corporate social responsibility (CSR) activities. In addition, the Group has published an annual report covering the economic and financial aspects of the Group’s activities. Sustainability Report 2012 (Highlight Edition, Japanese only) Most Material In order to enhance communication, the Nippon Paper Group has drawn attention of stakeholders Issues Matters holding the from its wide-ranging CSR activities to provide an easy-to-read highlight Sustainability Report edition that focuses on matters of particular interest to stakeholders as (Highlight Edition, well as activities that the Company considers are of major importance. Japanese only) Major Efforts Sustainability Report 2012 (Detailed Edition) This Report Regarding CSR The Nippon Paper Group has endeavored to provide a full and Sustainability Report (Detailed Edition) comprehensive account of its major CSR activities in an effort to promote in-depth information disclosure and to ensure accountability. Referring to the ISO 26000 standard, which provides voluntary guidance on social responsibility, this Sustainability Report 2012 also outlines the connection Matters the Company between seven core subjects and disclosure items. (Please refer to the considers important bottom of page 3.) The Selection of Reporting Items The selection of reporting items was made taking into consideration matters holding the attention of stakeholders and items that the Company considers are of major importance. Selection was also based on an exhaustive review of issues of priority to society drawing on a wide variety of sources including past questionnaire surveys, guidelines and other requirements, daily communication activities and SRI research. Period Covered April 1, 2011–March 31, 2012* Nippon Paper Group, Inc. and the companies listed above * Includes some information from before April 1, 2011 and after March 31, 2012 are defined as “the Company” and “The Nippon Paper Group,” respectively, in this report. In addition, the four Scope of Organizations Covered companies Nippon Paper Industries Co., Ltd., Nippon This report positions Nippon Paper Group, Inc., the holding Daishowa Paperboard Co., Ltd., NIPPON PAPER-PAK CO., company, as the principal reporting entity, while also LTD., and Nippon Paper Chemicals Co., Ltd. merged on covering the activities of the Company as well as its 48 October 1, 2012 with Nippon Paper Industries Co., Ltd. as consolidated subsidiaries. the surviving company. Certain information relating to more recent data is based on the Group’s company structure The scope of the report covers the basic environmental following the merger. The date is identified as appropriate in policies, systems, environmental accounting and environment each instance. performance data of the following 24 companies, which include all major production bases. Also included within Referenced Guidelines the scope of the report is data for six non-consolidated •Environmental Reporting Guidelines (2012) of the Ministry of subsidiaries of the aforementioned major production bases. the Environment Consolidated: Nippon Paper Group, Inc.; Nippon Paper Industries •Sustainability Reporting Guidelines (Version 3.1) issued by Co., Ltd.; Nippon Daishowa Paperboard Co., Ltd.; Nippon Paper the Global Reporting Initiative (GRI) Crecia Co., Ltd.; Nippon Paper Papylia Co., Ltd.; SHIKOKU •United Nations Global Compact COCA-COLA BOTTLING CO., LTD.; NIPPON PAPER-PAK CO., LTD.; Nippon Paper Chemicals Co., Ltd.; Nippon Paper Lumber •ISO 26000, etc. Co., Ltd.; NP Trading Co., Ltd.; Nippon Paper Development Co., Ltd.; KOYO PAPER MFG. CO., LTD.; Kitakami Paper Co., Ltd.; Nippon Paper Industries USA Co., Ltd.; Nippon Seitai Corporation; PAL WOOD MATERIAL CO,. LTD.; PAL CO., LTD.; N&E Co., LTD.; Disclaimer Daishowa Uniboard Co., Ltd. This report includes statements of fact and historical data as well as plans, (The contribution to total consolidated sales of the forecasts and estimates (forward-looking statements) based on the business plan companies listed here was 89%). and policies of the Nippon Paper Group. These forward-looking statements are the result of assumptions or judgments based on currently available information as this report was prepared. Be advised that the estimates described in the Non-consolidated: Akita Jujo Chemicals Co., Ltd.; SOKA PAPER- forward-looking statements may differ significantly from actual results due to a PAK CO., LTD.; EGAWA PAPER-PAK CO., LTD.; MIKI PAPER-PAK number of important factors including future business activities and changing CO., LTD.; ISHIOKA KAKO CO., LTD.; Nakoso Film Co., Ltd. market conditions. 2 Nippon Paper Group Sustainability Report 2012 Contents Editorial Policy 2 Customer Responsibility 67 Message from the President 4 Management Approach 68 Report Policy and Management Reconstruction following Efforts with regard to Issues 70 the Great East Japan Earthquake 6 Activities of Nippon Paper Industries Co., Ltd. / Activities of Nippon Daishowa Paperboard Co., Ltd. / Activities of Special Feature Nippon Paper Crecia Co., Ltd. / Activities of Nippon Paper Building a Sustainable Future 12 Papylia Co., Ltd. / Activities of SHIKOKU COCA-COLA Outline of the Nippon Paper Group 16 BOTTLING CO., LTD. / Development of Environmentally Friendly Products Management Responsibility 19 Human Rights, Employment and Management Approach 20 Labor Responsibility 83 Group Governance / CSR Management / Compliance / Information Disclosure and Investor Relations; Profit Management Approach 84 Distribution to Shareholders / Dialog with Stakeholders Policy and Management / The Status of Employment and Industrial Relations Environmental Responsibility 31 Efforts with regard to Issues 86 Management Approach 32 Creating Workplaces that Support Employee Diversity / Policy and Management / Material Balance Cultivating Human Resources / Occupational Safety and Health Efforts with regard to Issues 40 Mitigation of Climate Change / Biodiversity Conservation / Community Responsibility 93 Reducing Waste Generation and Final Disposal / Initiatives to Prevent Environmental Pollution / Promotion of Recycled Management Approach 94 Paper Use Policy and Management Material Procurement and Efforts with regard to Issues 96 Forest Responsibility 53 Educational Activities / Environmental Activities / Activities Aimed at Promoting Coexistence with Local Communities Management Approach 54 and Society Policy and Management / Current Status of Raw Materials Procurement Guideline Comparison Table (GRI Ver 3.1) 100 Guideline Comparison Table (Enviromental Efforts with regard to Issues 56 Reporting Guidelines (2012)) Sustainable Procurement of Raw Materials / Protection and Comparison Table (the United Nations Cultivation of Domestic Company-owned Forests / Global Compact) 102 Contributing to Local Communities in Overseas Afforestation Areas / Stable Procurement of Recycled Paper Third-Party Comments 103 Action in Response to Third-Party Comments 103 The Connection between the Seven Core Subjects of ISO 26000 and Disclosure Items The Nippon Paper Group is guided by ISO 26000 in its efforts to fully grasp the needs of society and engage in comprehensive information disclosure. The connection between the disclosure items of the Group’s Sustainability Report 2012 (Detailed Edition) and the seven core subjects of ISO 26000 is presented as follows. Recognizing that the Nippon Paper Group, which relies heavily on timber as a source for manufacturing paper and related products, has a particularly close association with forests compared with other industries, this report includes a section on material procurement and forest resources that is independent of the section on the environment. In addition, steps have been taken to comment on the Group’s responsibility with respect to management encompassing organizational governance as well as fair operating practices and responsibility with respect to human rights, employment and labor covering human rights and labor practices. ISO 26000 Core Subjects Organizational Fair Operating The Consumer Human Labor Community Practices Rights Practices Involvement and Governance Environment Issues Development Material Human Rights, Management Environmental Procurement Customer Employment Community Responsibility Responsibility and Forest Responsibility and Labor Responsibility Responsibility Responsibility Nippon Paper Group Sustainability Report 2012 3 Message from the President We will carve out a new future by promoting growth as a comprehensive player in biomass businesses while harnessing the experience gained in overcoming the earthquake disaster. The Nippon Paper Group will create a new future by building on the experience gained in overcoming adversity. 2011 was a difficult year. The Great East Japan Earthquake, flooding in Thailand, and the financial crisis in Europe all had a dampening effect on conditions around the world. The earthquake disaster in Japan, in particular, took its toll on both domestic and overseas markets. For its part, the Nippon Paper Group was not spared from the disaster with damage to production bases in the Tohoku region including the Ishinomaki, Iwanuma, and Nakoso mills owned and operated by Nippon Paper Industries
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